Just last Sunday, the Straits Times published an article on the “7 habits of successful investors“. In it, it lists down many characteristics, but the last one has caught my attention. It says that “go for active management”.
I am part angry and part disappointed. Angry because such an article could get published passing through editorial checks; disappointed because everyday, people fall prey to the authority bias, tending to trust the experts who have a hidden motive. I say this because the report was published by Allianz Global Investors, a fund management company.
Today, I will like to try to shed some light on this topic that most people have been deluded on. More specifically, I will show you:
- What is active and passive management
- What are the 7 habits of successful investors
- Why active management will never win passive management
What is active and passive management
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